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Discriminant Validity Assessment: Use of Fornell & Larcker criterion versus HTMT Criterion
Open accessAbstract
Assessment of discriminant validity is a must in any research that involves latent variables for the prevention of multicollinearity issues. Fornell and Larcker criterion is the most widely used method for this purpose. However, a new method has emerged for establishing the discriminant validity assessment through heterotrait-monotrait (HTMT) ratio of correlations method. Therefore, this article presents the results of discriminant validity assessment using these methods. Data from previous study was used that involved 429 respondents for empirical validation of value-based excellence model in higher education institutions (HEI) in Malaysia. From the analysis, the convergent, divergent and discriminant validity were established and admissible using Fornell and Larcker criterion. However, the discriminant validity is an issue when employing the HTMT criterion. This shows that the latent variables under study faced the issue of multicollinearity and should be looked into for further details. This also implied that the HTMT criterion is a stringent measure that could detect the possible indiscriminant among the latent variables. In conclusion, the instrument which consisted of six latent variables was still lacking in terms of discriminant validity and should be explored further.
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“Nevertheless, according to Hamid et al. [59], 'Fornell and Larcker criterion and the assessment of the cross-loadings are inadequately sensitive in detecting discriminant validity when compared with Heterotrait-Monotrait (HTMT) criterion.”
From Are You Environmentally Conscious Enough to Differentiate between Greenwashed and Sustainable Items? A Global Consumers Perspective (2020) · cites this paper as [59]
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“Cross-loadings assess whether an indicator is more strongly associated with its own construct compared to other constructs (Henseler et al., 2015), while HTMT measures the degree of similarity between constructs and indicates discriminant validity if all values are below 1 (Hamid et al., 2017).”
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“An AVE value greater than 0.50 indicates that a factor adequately explains its related concepts, while a CR value above 0.70 confirms strong internal consistency [21, 22].”
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“Assessing discriminant validity is essential for understanding the relationships among reflectively measured constructs [72].”
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“Ensuring discriminant validity helps to prevent the constructs from overlapping, thereby avoiding problems like multicollinearity (Ab Hamid et al., 2017; Henseler et al., 2015).”
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“…that are divided by the correlations of indicators within the same construct (Alyoubi et al., 2018) and shows that all nine constructs of the study are less than the recommended maximum threshold in the literature of 0.9, so that discriminant validity is satisfied (Dhisasmito & Kumar, 2017).”
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“Meanwhile, the HTMT value should ideally be less than 1 ( 1) for the data to be considered valid (Hamid, Sami, & Sidek, 2017).”
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“Based on the results obtained from processing the data presented in table III, it can be seen that all Average Variance Extracted (AVE) values are above 0.5 which means that the model in this study can be said to be valid (Hamid, 2017).”
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Metadata
- Authors
- Ab Hamid, M. R., Sami, W., & Mohmad Sidek, M. H.
- Affiliations
- Universiti Malaysia Pahang Al-Sultan Abdullah (MY)
- ORCID
- Sami, W
- Venue
- Journal of Physics: Conference Series
- Publisher
- IOP Publishing
- Published
- 2017-09
- Volume
- 890
- Pages
- 012163
- ISSN
- 1742-6588 (ISSN-L)
- 1742-6596
- OpenAlex
- W2757330327
- Cited by
- 1,478
- References
- 17
- Citations by year
- 2026: 230 · 2025: 282 · 2024: 307 · 2023: 243 · 2022: 190 · 2021: 135 · 2020: 61 · 2019: 22 · 2018: 5 · 2017: 1
- FWCI
- 35.75
- Type
- conference paper
- Language
- en
- Open access
- diamond
- doi.org
- Licence
- Locations
- Journal of Physics Conference Series (publishedVersion, cc-by)
- Topics
- Social Sciences › Decision Sciences › Management Science and Operations Research › Psychometric Methodologies and Testing
- Social Sciences › Business, Management and Accounting › Strategy and Management › Business Strategies and Management Research
- Physical Sciences › Mathematics › Statistics and Probability › Statistical Methods and Applications
- Keywords
- discriminant validity, HTMT, multicollinearity, latent variables, higher education institutions, convergent validity
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